Form 8-K for FIRST CHESAPEAKE FINANCIAL CORP filed on February 16, 1999
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 11, 1999
FIRST CHESAPEAKE FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
VIRGINIA 0-21912 54-1624428
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
12 OREGON AVENUE, PHILADELPHIA, PENNSYLVANIA 19148
(Address of principal executive offices)
Registrant's telephone number, including area code (215) 755-5691
(Former name or former address, if changed since last report.) Not applicable
<PAGE>
ITEM 5. OTHER EVENTS
First Chesapeake Acquires Mortgage Banking Firm with Locations in Five States
PHILADELPHIA, PA - Richard N. Chakejian, Jr., President of First Chesapeake
Financial Corporation (the "Company"; OTC Bulletin Board: FCFN), today announced
the acquisition of an undisclosed Eastern U.S. mortgage banking firm with retail
mortgage origination operations in five states, Kentucky, Indiana, Missouri,
North Carolina and Tennessee. The identity of the firm will be disclosed upon
obtaining final regulatory approval.
This is the second successful mortgage banking acquisition for First Chesapeake,
which recently announced its agreement to purchase FMB Mortgage, a conventional
wholesale platform based in Daytona Beach, Florida. Both companies are
wholly-owned subsidiaries of First Chesapeake Funding Corporation, the Company's
existing wholesale and retail mortgage banking operation in Plantation, Florida.
The combined historical profitability of the two acquired entities is estimated
to be approximately $1.3 million (unaudited), and the units are estimated to
produce over $150 million of closed loans annually.
"This purchase has been the centerpiece of our most recent acquisition plan. The
management team in place has developed a superior operation, and they (like the
Daytona Beach, Florida management) will remain intact," continued Chakejian.
"Our goal has been to build a strong controlled operation." Said Les Salzman,
who serves as President of First Chesapeake Funding Corporation. "With
additional mortgage lender acquisitions under letter of intent, we have focused
on building a strong and experienced group that can provide leadership and the
nucleus of a powerful management team."
"The next acquisitions (currently under letter of intent) are scheduled for
Pennsylvania and Florida, and have in excess of $100 million in estimated annual
loan closings. Management will stay on in each of these acquisitions." Chakejian
noted. "We hope to have these done by mid-second quarter of 1999."
The Company is engaged primarily in the residential and commercial mortgage
banking business at both the wholesale and retail levels. First Chesapeake
Funding Corporation's operational headquarters is at 8551 W. Sunrise Boulevard,
Plantation, FL 33322. Further information may be obtained by calling Les Salzman
at (954) 385-8400 or by fax to (954) 474-2438.
Statements in the press release concerning the Company's business outlook or
future economic performances, anticipated profitability, revenues, expenses or
other financial items, are forward-looking statements that are estimates
reflecting the best judgment of the Company based on currently available
information. Such forward-looking statements involve known and unknown risks,
uncertainties, contingencies and other factors that could cause results,
performance or achievements to differ materially from those stated. Such risks,
uncertainties, contingencies and other factors, many of which are beyond the
control of the Company, include overall economic and business conditions, trends
for the continued growth of the mortgage and financial services industry, the
realization of anticipated revenues, profitability and cost synergies, the
demand for the Company's products and services, pricing and other competitive
factors in the industry, new government regulations and/or legislative
initiatives, and other risks and uncertainties described in the Company's
reports and filings with the Securities and Exchange Commission. There can be no
such assurance that such factors will not affect the accuracy of such
forward-looking statements, and the Company assumes no obligation to update the
information in this release. Several of the transactions described herein have
not closed, and there can be no assurance that the Company will complete the
acquisitions described herein. Finally, certain information herein is based on
unaudited financial statements and relies on representations made by the sellers
as to the accuracy and completeness of such information.
Contact: Richard N. Chakejian, Jr., President
Mark E. Glatz, Chief Financial Officer
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
FIRST CHESAPEAKE FINANCIAL CORPORATION
Date: February 16, 1999 By: Mark Mendelson
---------------------------------
Mark Mendelson, Chief Executive Officer
By: Richard N. Chakejian, Jr.
---------------------------------
Richard N. Chakejian, Jr. President
By: Mark E. Glatz
---------------------------------
Mark E. Glatz, Chief Financial Officer
